The analysis of ASC 815-40 highlights the need for the AFSB to publish binding guidelines for the accounting and reporting of SAFEs, and these guidelines should be that SAFEs are additional paid capital that is part of the standing equity. We are at CSA 815-40. Without going into extreme detail, this guide tells us that SAFE is in debt due to certain factors. The first is that SAFE is not indexed to its own shares in accordance with ASC 815-40-15-5 to 15-8a, see ASC 815-40-55-33 as an example. Therefore, the classification of shares is excluded. If, for some reason, it was thought that safe was pegged to its own shares, there would still be other considerations that would lead to safe being considered debt, which is found in ASC 815-40-25-7 to 25-35. Some of those that may apply are: this condition is clearly met. Non-registered preferred shares are normally issued upon conversion to DE SAFE investors. However, the effective rights of SAFE holders are less than the rights of common shareholders. Indeed, safe holders have no rights. Although the STANDARD SAFE agreement insquential certain rights to SAFEs holders, SAFE holders do not have the opportunity to assert their rights….